Inspire Brands, a holding company backed by private equity firm Roark Capital Group, is acquiring Dunkin’, which also owns Baskin-Robbins. Inspire already owns 11,000 Arby’s, Buffalo Wild Wings, Sonic, Jimmy John’s and other restaurants.
Inspire plans to assume Dunkin’s debt in this transaction, and Inspire plans to acquire Dunkin’s outstanding shares at a price of $106.50 per share. At the close of trading on Friday, the issue price of the stock was $99.71 per share.
Inspire CEO Paul Brown said in a deal announced late Friday that Dunkin’ and Baskin-Robbins will form “complementarity” with Inspire’s portfolio. He pointed out that through these two brands, Inspire will gain opportunities for international customers and more than 1
The acquisition will almost triple the number of restaurants in Inspire: Dunkin’ has more than 12,500 locations and Baskin-Robbins has nearly 8,000 locations.
Dunkin’s CEO Dave Hoffman said in a statement that the transaction will “bring meaningful value to shareholders” and he hopes it will drive franchise growth.
But sales have been growing. In the next three months, same-store sales at the US Dunkin’ store increased by 0.9%. The company said they improved every month of the quarter.
To help reverse the sales situation, Dunkin’ made some quick suggestions. It adds some foods, such as bagel mini bread stuffed with cream cheese, which will attract customers who visit the store in the afternoon. It also started offering autumn menus earlier this year and partnered with TikTok star Charli D’Amelio to attract young customers. There are too many tricks: when the Charli promotion was launched, Dunkin’ set a record of daily active app users.
As local and independent coffee shops struggle, large chains like Dunkin’ may grab market share or expand their footprint.
Dunkin’s Americas President Scott Murphy said during a conference call to discuss the company’s third-quarter results: “Dunkin’ is thriving in the COVID world.” “We are excited about the future.”
The company was previously privately owned. In 2005, Pernod Ricard SA sold Dunkin’ Donuts and Baskin-Robbins to three private equity firms, including Bain Capital, Carlyle Group and Thomas H. Lee Partners, for a price of US$2.4 billion. The company went public in 2011.
— Jazmin Goodwin of CNN Business contributed to this report.